Agriculture, Lighting Industry

VC Funding Plummets For Indoor Farming

VC Funding Plummets For Indoor Farming

Venture capital funding of indoor farming companies dropped 91% in Q1 of 2023 compared with Q1 of 2022 (deal value). The deal count in the same time period dropped 70%, from 46 deals in Q1 2022 down to 14 deals in Q1 2023.

Rising energy costs and rising interest rates are both hurting indoor farming profits. Energy costs have been rising due to the war in Ukraine, supply chain issues, and electrification stresses on the electricity sector. Five indoor farming companies have already folded this year (since 1/1/23), including Future Crops and Kalera.

There have been some notable successful raises. Plenty raised $400 million Series E in January 2022. Gotham Greens plans to triple its production capacity, having closed its $310 million Series E in September 2022.

More information is available here.

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David Shiller
David Shiller is the Publisher of LightNOW, and President of Lighting Solution Development, a North American consulting firm providing business development services to advanced lighting manufacturers. The ALA awarded David the Pillar of the Industry Award. David has co-chaired ALA’s Engineering Committee since 2010. David established MaxLite’s OEM component sales into a multi-million dollar division. He invented GU24 lamps while leading ENERGY STAR lighting programs for the US EPA. David has been published in leading lighting publications, including LD+A, enLIGHTenment Magazine, LEDs Magazine, and more.

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